We will continue to uphold the principle of "one country, two systems," under which Hong Kong people administer Hong Kong and Macao people administer Macao with a high degree of autonomy. We will strictly comply with the basic laws of the Hong Kong and Macao special administrative regions and give our full support to their chief executives and governments in administering the regions in accordance with the law. We will continue to implement the Closer Economic Partnership Arrangement the mainland has with Hong Kong and Macao and increase exchanges and cooperation between the mainland and the two of them in matters of the economy, trade, science and technology, education, culture, health and sports. We firmly believe that Hong Kong and Macao will remain prosperous and stable for a long time to come.

We adhere to the basic principles of "peaceful reunification" and "one country, two systems" and the eight-point proposal for developing cross-Straits relations and promoting China's peaceful reunification under the present circumstances. We will unswervingly uphold the one-China principle and never give up our efforts to achieve peaceful reunification. We will never change the principle of placing our hopes on the people of Taiwan. We will uncompromisingly oppose secessionist activities aimed at Taiwan independence. We will continue working with Taiwan compatriots to facilitate visits by individuals, promote economic, scientific, technological, and cultural exchanges and cooperation, and establish peaceful and stable cross-Straits relations. We will strive to resume dialogue and negotiation between the two sides under the one-China principle and promote resumption of direct links for postal, air and shipping services and trade on a comprehensive, direct and two-way basis. We will support economic development on the west shore of the Taiwan Straits in Fujian and in other areas where Taiwan investment is concentrated, protect the legitimate rights and interests of our Taiwan compatriots in accordance with the law, and serve them wholeheartedly. Everyone wants cross-Straits relations to be peaceful and stable and develop to the mutual benefit of both sides. Anyone who tries to reverse this major trend will most certainly fail. It is the common wish of all Chinese people to see the ultimate realization of the great cause of national reunification, a process that no one can stop.

Fellow Deputies,

Over the last year we held high the banner of peace, development and cooperation and continued to follow an independent foreign policy of peace. We safeguarded the fundamental interests of China and its people, developed friendly ties and mutually beneficial cooperation with foreign countries, and contributed to common development and the safeguarding of world peace.

This year we will unswervingly continue to take a road of peaceful development. In international affairs, we will continue to advocate democracy and justice and promote coordination and cooperation. We will continue to safeguard security for all on the basis of harmony and mutual trust and promote common prosperity on the basis of equality and mutual benefit. China will continue to be open-minded and inclusive, promote dialogue between civilizations, and work to make the international order more just and equitable.

We will strengthen China's diplomacy in all areas on the basis of the Five Principles of Peaceful Coexistence. We will consolidate and strengthen friendly cooperation with other developing countries. We will adhere to our foreign policy of friendship and partnership with our neighbors, promote the formation of a mechanism for regional cooperation, and take cooperation in practical matters with our neighbors to a new high. We will expand common interests with developed countries, deal with differences appropriately, and promote exchange and cooperation with them. We will actively participate in and initiate multilateral diplomacy and play a constructive role in international and regional affairs. We will expand and intensify cultural exchanges with other countries to increase understanding and friendship between our peoples. We will protect the lawful rights and interests of Chinese nationals and corporations overseas. The Chinese government and people will work tirelessly with the people of all other nations for a peaceful, just and harmonious new world.

III. Explanation of the Outline of the Eleventh Five-Year Guidelines for National Economic and Social Development (Draft)

The Proposal of the CPC Central Committee for Formulating the Eleventh Five-Year Guidelines for National Economic and Social Development, adopted at the Fifth Plenary Session of the Sixteenth Central Committee, sets forth the objectives, guiding principles and main tasks for China's economic and social development for the next five years. On the basis of the Proposal, the State Council prepared the Outline of the Eleventh Five-Year Guidelines for National Economic and Social Development (draft), which has been submitted to this session for your deliberation and approval. I would now like to briefly go over several points.

1. The compilation process and major features of the Outline (draft)

The Central Committee and the State Council took the drafting of the Eleventh Five-Year Development Guidelines very seriously. The State Council began making arrangements for preparatory work for the drafting in July 2003. It organized central government departments, local governments, research institutions and experts in various fields to carry out research on major issues facing economic and social development, laying the groundwork for compiling the Outline (draft). Following the Fifth Plenary Session of the Sixteenth Central Committee, the State Council carried out in-depth research based on the Proposal of the Central Committee before compiling the Eleventh Five-Year Development Guidelines. A committee of experts from various fields was set up to carry out consultation and deliberation. Suggestions were solicited in various forms nationwide, and many suggestions were submitted by deputies to the people's congresses, members of CPPCC committees, and people from all sectors of society. Drafting the Outline was therefore a democratic, scientific policy-making process that pooled the wisdom of the Chinese people.